What is Comprehensive Credit Reporting?

In 2012 the Credit Reporting Privacy Code 2004 (the Code), which is the regulation governing consumer credit reporting in New Zealand, was amended by the Privacy Commissioner to introduce comprehensive credit reporting. Comprehensive credit reporting changes the type of consumer credit information that can be collected by credit bureaus and used by credit providers when making a credit decisions. This change came into effect on 1 April 2012. A copy of the Code may be downloaded from the Office of the Privacy Commissioner’s website: www.privacy.org.nz

Previously New Zealand had a negative reporting system. This meant consumer credit reports could only contain information such as credit enquiries (typically applications for credit e.g. a personal loan or credit card) or the fact a particular credit provider or collection agency had loaded a credit payment default. Under the new comprehensive credit reporting system positive data is able to be included on credit reports and provided to eligible groups - this will provide a more balanced view of an individual’s credit history. Many developed countries in the world operate under a comprehensive credit reporting system already.

The positive data that can be included on credit reports includes account information such as the date an account was opened and closed, credit limit, type of credit account, as well as 24 months credit repayment history. Repayment history information can only be provided by and accessed by certain agencies. Those agencies are;

• Registered Credit Providers (i.e. Banks, Finance Companies),
• Telecommunications providers,
• Retail Gas and Power Utilities and;
• Insurers (for defined purposes).

As a consumer, you can access and view all information held in your credit file including any positive data that has been submitted.

Industry rules around data, standards and sharing may further limit those organisations that may access positive data.